Want to Sell More Life Insurance? Focus on the Lesser Known Benefits

There's a myth out there that life insurance (and selling it) is fairly simple: If someone pays the premium, his or her beneficiaries get the benefit when they die. But there are many other ways that life insurance can provide extra coverage and protection - ways that most of your prospects probably aren't aware of. Explaining these hidden benefits is a great way to convert "I'll think about it" prospects into "I'll take it" customers.

Make sure your prospects understand that:

• Term and group life policies can be converted to permanent life policies - Prospective buyers of term life and group life policies may be reassured by the fact that many of these policies can be changed into individual permanent life policies - usually without the need for additional medical exams or underwriting. This will cost the insured additional premium, of course. But in cases where the insured experiences a severe medical condition, the security of continuing life coverage when the term policy expires can be invaluable.


• Some life insurance policies can cover long-term care - Some insurance carriers are now offering "long-term care riders," which allow the insured to take immediate payment benefits to cover nursing homes, assisted living homes, and other long-term care. These payouts are then deducted from the death benefit to beneficiaries, but can save the insured and their families substantial out-of-pocket expenses. Long-term care riders are usually added to a policy at the time of purchase.


• Life insurance can provide immediate benefits in case of terminal illness - Some policies include what's called "living benefits" or "accelerated death benefits"; other policies allow these to be added as a rider. Either way, they allow the insured to receive payments to cover medical bills or other immediate expenses in the event that he or she is diagnosed with a terminal illness.


• Life insurance can pay its own premium - Think of the peace of mind some prospects will find in a "waiver of premium" rider that covers the cost of policy premiums in the event of disability, financial hardship or other circumstances.


• Permanent life policies can provide cash in tough times - Having just been through a tough recession, prospects may want to know that the money accrued in permanent life policies can be available to them in emergencies - a great alternative to running up credit card debt to get by in tough economic times.

Yes, the basic "premium for death benefits" value proposition of life insurance is pretty straightforward. But for many prospects,the added value that life insurance can provide while they're still living can be the deciding factor in closing the deal.

As independent agents, it's our job to help clients understand all of the options available to them. Explaining these hidden benefits of life insurance provides a great service - and helps close more sales. It's truly a win-win for you and your clients.